Linde Bangladesh financial analysis: gases-only EPS BDT 23, 12% H1 sales growth, energy costs (Oct 2026)

Investment considerations: a debt-free gases business with EPS of BDT 23, growing again in 2026 but squeezed by energy costs

Linde Bangladesh Limited (LBL) makes and supplies industrial and medical gases: liquid oxygen, nitrogen, argon and carbon dioxide in bulk, compressed gases in cylinders, and medical oxygen with hospital pipelines and equipment [1 p.21]. It is 60% owned by The BOC Group Limited, part of Linde plc [1 p.30]. Since the welding-electrode business was demerged into Linde Industries Pvt. Ltd. (LIPL) in 2023 and sold to ESAB Middle East FZE in 2024 [1 p.6], LBL is a gases-only company with revenue of BDT 2,281m in 2025, less than half of the BDT 5,083m the combined business sold in 2021 [1 p.29].

The sale proceeds went to shareholders. LBL paid special dividends of BDT 154 a share for 2023 and BDT 450 a share for 2024 (BDT 410 interim plus BDT 40 final) [1 p.29] [9], and BDT 8,779m of dividends left the company in 2024 alone [1 p.70]. What remains is a smaller, debt-free gases business: NAV per share fell from BDT 397 (2022) to BDT 213 (June 2026) [1 p.29] [2 p.2], and the 2025 dividend was BDT 10 a share [1 p.19].

Business: three gas segments, three plants, and no welding since the 2024 sale to ESAB

LBL is the oldest gases company in Bangladesh. Its Chittagong oxygen plant dates from 1953; it was Bangladesh Oxygen Limited from 1973, BOC Bangladesh from 1995 and Linde Bangladesh from 2011, after the Linde Group bought BOC in 2006 [1 p.6]. Capacity sits in three production sites: a 30 TPD air separation unit (ASU) at Rupganj (1995), a 20 TPD plant at Shitalpur bought in 1999, a 100 TPD ASU at Rupganj commissioned in 2017, and a 36 TPD CO2 plant at Rupganj from 2019 [1 p.6]. About 300 staff serve more than 35,000 customers [1 p.6].

The big change of the decade was the exit from welding. Hardgoods (welding electrodes, mainly for shipbuilding and light fabrication) made BDT 2,693m of revenue in 2023, more than the gases business [4 p.18]. Volume had been falling: shipbuilding volume was 14% lower in 2023, and 'multiple local competitors with aggressive marketing' had taken share for several years [4 p.19]. The business was demerged into LIPL in 2023 and sold to ESAB in 2024 [1 p.6] [8]; LBL booked BDT 7,579m of income from the sale and received BDT 7,948m of net proceeds [1 p.68] [1 p.70]. So welding products are no longer part of the listed company.

LBL now reports three segments. Bulk gases (liquid oxygen, nitrogen, argon and CO2 delivered by tanker) were BDT 771m in 2025; packaged gas and products (PG&P: compressed industrial gases, specialty gases such as helium and refrigerants) BDT 510m; healthcare (medical gases, equipment and pipelines) BDT 1,001m [1 p.21]. There is no LPG business: the Bogra LPG bottling plant was decommissioned in 2013 [1 p.6].

Customers. Bulk gases go to metallurgy (steel), livestock, bicycle exporters and food and beverage (CO2 for soft drinks) [3 p.21]; PG&P is pushing portable cryogenic containers (PCC) into ship-breaking and scrap cutting [1 p.22]; healthcare supplies liquid and compressed medical oxygen to public and private hospitals [1 p.22]. Power plants are not named as a customer group in the 2024-2025 reports; we found no disclosure of revenue by end market, so the steel and shipbreaking shares are not measurable.

Competition. LBL's rivals are private, unlisted oxygen makers such as Islam Oxygen and Spectra Oxygen. Islam Oxygen applied to list, and the securities regulator rejected the application [10], so there is no listed peer whose filings allow a like-for-like comparison. The 2023 report says the company 'retained the market share' in bulk [4 p.18], but LBL does not publish its share.

Medical oxygen: up 54% in 2021, down to BDT 909m by 2023, back to BDT 1,001m in 2025

Medical oxygen is the clearest cycle in the numbers. Healthcare revenue was BDT 889m in 2020, rose 53.7% to BDT 1,367m in 2021 at the peak of COVID-19 demand, then fell 23.4% in 2022 and 13.2% in 2023 to BDT 909m [6 p.72] [5 p.76] [4 p.18]. The 2023 report said hospital demand was back to pre-pandemic levels, and that a large amount was still owed by government hospitals for oxygen supplied during COVID-19 [4 p.19]. Growth resumed at 6.4% in 2024 and 3.5% in 2025 (the directors' report says 7% against the previous year on its own basis) [3 p.21] [1 p.22], with new liquid and compressed medical oxygen contracts.

The receivable overhang has mostly cleared. Government hospitals paid 'a considerable amount' in 2024 and 'a significant portion' in 2025 [3 p.21] [1 p.22]. Trade and other receivables fell from BDT 856m (Dec-2024) to BDT 736m (Jun-2026) [1 p.67] [2 p.2], but 2025 still carried BDT 30.1m of new provision for trade receivables and BDT 3.6m of write-offs [1 p.84].

Line items: volume up 23%, price per m3 down 12%, and power is the swing cost

Revenue. 2025 revenue grew 3.0% to BDT 2,281m [1 p.68]. Gas from the ASUs (oxygen, nitrogen, argon) was BDT 1,396m on 30.2m m3, up from BDT 1,284m on 24.6m m3; dissolved acetylene was BDT 101m and other products BDT 785m [1 p.82]. Volume rose 23% but revenue per m3 fell from BDT 52.3 to 46.2 [13], consistent with growth in lower-priced bulk nitrogen projects (spice grinding, tyre curing, purging) and the 'de-captivation' of customers that used to make their own compressed gas [1 p.22]. Bulk revenue still fell 1.8%, while PG&P rose 10% on specialty gases, helium and dewar sales [1 p.21] [1 p.22]. H2 2025 grew about 10% [1 p.18], and H1 2026 revenue rose 12.1% to BDT 1,219m [2 p.3].

Cost of sales. Cost of goods manufactured was BDT 1,155m in 2025: raw and packing materials BDT 437m (calcium carbide for acetylene was 7.3% of it, the rest imported liquids, chemicals and packing), fuel and power BDT 360m and manufacturing overhead BDT 358m, of which depreciation BDT 200m [1 p.83]. Fuel and power fell 4.9% while ASU volume rose 23%, so power per m3 dropped from BDT 15.4 to 11.9 [13]; the chairman links this to power and utility supply improving from July 2025 after being 'substantially below desired levels' [1 p.18]. Gross margin held at 46.6% in 2025 and 46.1% in H1 2026 [13].

Energy sensitivity (history only). In 2025 fuel and power was BDT 360m against profit before tax of BDT 433m [1 p.83] [1 p.68], so each 10% change in the power bill moved pre-tax profit by BDT 36m, or 8.3%. That is why the Q3 2026 tariff increase showed up at once: revenue rose 9% to BDT 642m but profit fell 19% to BDT 79.6m (EPS BDT 5.23 against 6.48) [7].

Operating expenses fell 11.4% to BDT 685m in 2025 [1 p.68]. The fall came from the absence of the BDT 54.5m Shitalpur impairment, lower legal fees (BDT 7.6m against 35.1m) and lower bad-debt write-offs; against that, receivable provisions swung from a BDT 11.4m release to a BDT 30.1m charge and the technology licence fee rose to BDT 80.8m [1 p.84]. Delivery is the largest distribution cost at BDT 170m [1 p.84]. Profit from operations rose 40.8% to BDT 379m [13].

Below the operating line. Foreign exchange gains were BDT 119m in 2024 on dollar balances from the sale and BDT 11m in 2025; net finance income was BDT 15m in both years [1 p.68]. The effective tax rate was 20.5% in 2025 and 28.3% in H1 2026 [13]; other income fell from BDT 40m in H1 2025 to BDT 1m in H1 2026 [2 p.3], so H1 2026 profit rose only 3.7% to BDT 194.5m despite the 37.6% rise in operating profit.

The parent: 60% owner, 3% of turnover as a licence fee, and the main recipient of BDT 9.2bn of special dividends

The parent is paid in three ways: dividends on its 60% stake, the technology licence fee and group IT charges. The royalty used to go to The BOC Group, UK at 3% of sales net of some deductions; from 1-Jan-2024 a new technology licence agreement with Linde AG, Germany charges 3% of disclosed turnover, which raised the 2024 charge from BDT 54m to BDT 66m and required a BDT 12.3m true-up in 2025 [1 p.84]. 'Global information service' cost a further BDT 24.0m in 2025 (BDT 34.1m in 2024) [1 p.84]. Royalties and technical fees were BDT 49.1m in 2021 and BDT 44.5m in 2022 on a larger, welding-inclusive revenue base [6 p.72] [5 p.76].

Dividends are the main channel. Of the BDT 6,848m declared for 2024, 60% (about BDT 4.1bn) went to the parent [1 p.4] [1 p.30]. Board control rests with Linde: the chairman, Abhijit Banerjee, ran Linde India until 2025; directors Milan Sadhukhan (MD of Linde India from January 2026) and R.C. Kaushik (head of sales, Linde India) are group executives [1 p.14] [1 p.15] [1 p.17].

Ratios: ROE fell from 21% (2021) to 10% (2025); margins held, the base halved

Growth. On the combined (gases plus welding) basis revenue grew from BDT 4,271m in 2016 to a peak of BDT 5,683m in 2019, fell 17.1% in 2020 and recovered to BDT 5,083m in 2021 [6 p.27]. From 2023 the series is gases only, and growth has been 2-3% a year [1 p.29] until the 12.1% of H1 2026 [2 p.3]. Fixed-asset turnover fell from about 1.5x to 0.9x because the welding business used little capital relative to its sales [13]: the gases business is the capital-heavy part.

Margins. EBITDA margin was 30-36% between 2016 and 2022 and 30.7% in 2025 [13]. Gross margin, at 41-49% throughout, is high for an industrial company because the main input is air plus electricity [1 p.29]. Net margin fell from 24.1% in 2021 to 15.1% in 2025, mainly because overheads now sit on half the revenue [13].

Returns. ROE on average equity was 25-28% in 2017-2019 and 20-21% in 2020-2021, then 14.6% (2022), 3.9% (2023) and 10.3% (2025) [13]. 2024's 141% is the one-off sale gain. Even after paying out most of the cash, the gases business earns about 10% on book equity, of which roughly a third is cash and current assets. The company's own ROCE figure was 11% in 2025 against 20% in 2021 [1 p.29].

Cash conversion. Operating cash flow per share exceeded EPS every year in 2016-2021 (1.0-1.3x) [13]. It dropped to 0.64x in 2022 when COVID-era hospital bills went unpaid, and was 1.07x in 2025 [13]. Capex has been modest since the 2017 ASU and 2019 CO2 plant: BDT 156m in 2025, below depreciation of BDT 283m [1 p.70] [1 p.29].

Payout. LBL paid out 54-72% of earnings in 2016-2022 [13]. The 2025 payout fell to 44% (BDT 10 a share) as cash fell from BDT 1,560m to BDT 1,116m through 2025, mostly from paying the 2024 final and unclaimed special dividends [1 p.70]. The chairman cites investment in 'capacity expansion' [1 p.19], but no specific project or amount is disclosed in the pages we read.

Earnings quality: underlying operating profit rose 13% in 2025; free cash flow BDT 212m

Earnings quality. Reported profit in 2023-2025 is hard to read without adjustments. 2023 carried only part of a year of welding and the demerger costs, 2024 includes the BDT 7,579m sale gain, a BDT 119m foreign exchange gain and a BDT 54.5m impairment, and 2025 includes a BDT 12.3m licence-fee true-up for the prior year [1 p.68] [1 p.84]. Stripping these out, the gases business made profit from operations of BDT 324m in 2024 (269 + 54.5 impairment) and BDT 367m in 2025 (379 - 12.3 true-up) [13], a 13% underlying increase, and BDT 265m in the first half of 2026 alone [2 p.3].

What drives returns to shareholders. With no debt and modest capex (BDT 156m in 2025 against BDT 283m of depreciation and impairment) [1 p.70] [1 p.29], free cash flow is close to operating cash flow: BDT 212m in 2025 and BDT 192m in H1 2026 [13]. Three things decide what reaches shareholders: the operating margin (energy cost and price per m3), collections from hospitals (receivable days), and the board's payout decision. In 2025 the payout was 44% while dividends paid were BDT 681m because the 2024 final dividend fell into 2025 [1 p.70]. Cash then rebuilt by BDT 120m in H1 2026 [2 p.4].

Capital allocation. Since 2016 the main capital decisions were the 100 TPD Rupganj ASU (2017), the 36 TPD CO2 plant (2019), the exit from welding (2023-2024) and the distribution of almost all the sale proceeds [1 p.6] [1 p.70]. The Shitalpur plant was impaired by BDT 54.5m in 2024 [1 p.84], which suggests the older, smaller site is less useful now. Any new ASU would be the first large capex since 2019 and would change both the depreciation line and the cash available for dividends.

Balance sheet: no debt, BDT 1.24bn cash, receivable days down to 110

LBL has no borrowings; lease liabilities were BDT 25m at June 2026 [2 p.2]. Cash was BDT 1,235m, 24.0% of total assets [2 p.2]. The filings we read do not name the banks where it is deposited; this is a gap. Interest received was BDT 27m in 2025 [1 p.70].

Working capital improved. Receivable days fell from 141 to 110 and inventory days from 121 to 91 between December 2024 and June 2026 [13]. Trade and other payables of BDT 1,062m include accruals and amounts due to group companies, so payable days look long (295) [13]. Unclaimed dividends were BDT 171m at June 2026 [2 p.2]; BDT 9.0m unclaimed for more than three years went to the Capital Market Stabilisation Fund in December 2025 [1 p.82].

Tax. A BDT 1,216m prior-year tax adjustment cleared most of the advance tax paid on the 2024 sale, leaving a net advance tax asset of BDT 158m at December 2025 [1 p.82]. The auditor, Hoda Vasi Chowdhury & Co., gave an unqualified opinion on 2025 with key audit matters on revenue recognition and property, plant and equipment, and no emphasis of matter [1 p.60].

Governance: Linde controls the board; no sign of a sale of the gases business or a delisting

Board. Chairman Abhijit Banerjee (since January 2025); managing director Farid Sikder (since 1-May-2025, earlier 12 years at BOC/Linde Bangladesh); directors Shehzad Munim (former BAT Bangladesh MD), Farzanah Chowdhury (Green Delta Insurance CEO), barrister Tanjib-ul Alam, R.C. Kaushik and Milan Sadhukhan of Linde India [1 p.14] [1 p.15] [1 p.16] [1 p.17]. Three of seven are group executives. The company reports full compliance with the BSEC corporate governance code and won an ICSB gold award for 2024 [1 p.19] [1 p.39].

Sale or delisting. The only divestment is the welding business. We searched The Daily Star, The Business Standard, Prothom Alo and The Financial Express for news of a sale of the gases business or a delisting and found none; the 2025 chairman's statement speaks of 'strengthening our leadership position in the gases business in Bangladesh' and 'capacity expansion' [1 p.19]. DSE price-sensitive notices are where any such move would first appear.

What's next: 23 TPD of new bulk orders, PCC oxygen wins, and power tariffs

Items already disclosed that move the lines (direction only, no forecast):

Risks: energy tariffs, weak industrial demand and price dilution matter most

The risks below are tied to the line each one moves. None of them is new; the question for an investor is their size relative to a pre-tax profit of about BDT 430-550m a year [1 p.68] [2 p.3].

Key questions: price dilution, payout and power costs decide shareholder returns

LINDEBD at BDT 625.4 trades at 27.1x trailing EPS of BDT 23.05 and 2.93x June 2026 NAV [12] [13]. Before the welding sale the company-reported year-end P/E ranged from 16x to 24x (2016-2022) [6 p.27] [1 p.29]. These are facts about the price, not a view on it.

FAQ

Does Linde Bangladesh still make welding electrodes?

No. The welding business was demerged into Linde Industries Pvt. Ltd. in 2023 and sold to ESAB Middle East FZE in 2024 [1 p.6].

Why did Linde Bangladesh pay BDT 450 a share for 2024?

The dividend came from the BDT 7,579m gain on the sale of LIPL; it was BDT 410 interim and BDT 40 final [1 p.29] [1 p.68].

What is Linde Bangladesh's dividend for 2025?

BDT 10 a share, a payout of BDT 152m [1 p.19].

Who owns Linde Bangladesh?

The BOC Group Limited (Linde plc) owns 60%, institutions 21.9% and the public 18.1% [1 p.30].

Does Linde Bangladesh have debt?

No borrowings; cash was BDT 1,235m at 30-Jun-2026 [2 p.2].

Which results does this report use?

Annual reports 2016-2025 and the unaudited H1 2026 statements. Q3 2026 figures are from a press report; the Q3 filing is not yet in our corpus.

Sources

1. Linde Bangladesh Limited Annual Report 2025 (year to 31-Dec-2025) · link · accessed 2026-10-31
2. Linde Bangladesh Limited unaudited financial statements, six months to 30-Jun-2026 · link · accessed 2026-10-31
3. Linde Bangladesh Limited Annual Report 2024 · link · accessed 2026-10-31
4. Linde Bangladesh Limited Annual Report 2023 · link · accessed 2026-10-31
5. Linde Bangladesh Limited Annual Report 2022 · link · accessed 2026-10-31
6. Linde Bangladesh Limited Annual Report 2021 (five-year data 2016-2021) · link · accessed 2026-10-31
7. The Business Standard, 'Energy price hike weighs on Linde Bangladesh's Q3 profit' (17-Oct-2026) · link · accessed 2026-10-31
8. The Daily Star, 'Linde Bangladesh sells its welding electrode business to ESAB Group' (2024) · link · accessed 2026-10-31
9. The Financial Express, 'Linde to pay record dividends out of fund from sale of subsidiary' (2024) · link · accessed 2026-10-31
10. The Business Standard, 'BSEC rejects IPO application of Islam Oxygen' · link · accessed 2026-10-31
11. The Business Standard, 'Linde to invest $17m to build oxygen plant at BSMSN' (27-Sep-2023) · link · accessed 2026-10-31
12. AnalystBro price data (TradingView feed): DSE:LINDEBD daily bars to 29-Oct-2026 · link · accessed 2026-10-31
13. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-10-31